Watercrafts predetermined overhead rate is 200 of direct labor Information on the companys production activities during May follows a Purchased raw materials on credit, $220,000 b Materials requisitions record use of the following materials for the month Job 136 $ 49,000 Job 137 32,500 Job 138 19,400 Job 139 22,400 Job 140 6,800 Total direct materials 130,100 Indirect materials 21,000 Total materials requisitions $ 151,100 c Time tickets record use of the following labor for the month These wages were paid in cash Job 136 $ 12,100 Job 137 10,600 Job 138 37,500 Job 139 39,200 Job 140 3,800 Total direct labor 103,200 Indirect labor 24,500 Total labor cost $ 127,700 d Applied overhead to Jobs 136, 138, and 139 e Transferred Jobs 136, 138, and 139 to Finished Goods Inventory f Sold Jobs 136 and 138 on credit at a total price of $540,000 g Recorded the cost of goods sold for Jobs 136 and 138 h Incurred the following actual other overhead costs during the month Depreciation of factory building $ 70,000 Depreciation of factory equipment 37,500 Expired factory insurance 11,000 Accrued property taxes payable 35,500 i Applied overhead at month end to the Work in Process Inventory account (for Job 137 and 140) using the predetermined overhead rate of 200 of direct labor cost PREPARE JOURNAL ENTRIES TO RECORD EVENTS AND TRANSACTIONS 1 Purchased raw materials on credit, $220,000 2 Materials requisitions record use of the following materials for the month 3 Record raw material purchases on credit 4 Record the requisition of direct materials 5 Record the indirect materials 6 Record the entry for direct labor, paid in cash 7 Record the entry for indirect labor, paid in cash 8 Record the entry to apply overhead to jobs 136, 138 and 139 Record the transfer of completed jobs 136, 138 and 139 to finished goods Record the entry for sales on account for Jobs 136 and 138 Record the entry for the cost of jobs 136 and 138 1Record the entry for the actual overhead costs incurred 1Record the entry to apply overhead to Jobs 137 and 140 (Work in Process)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 18, 2024

Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows. a. Purchased raw materials on credit, $220,000.

Watercrafts predetermined overhead rate is 200% of direct labor. Information on the companys production activities during May follows.

a. Purchased raw materials on credit, $220,000.

b. Materials requisitions record use of the following materials for the month

Job 136	$ 49,000
Job 137	32,500
Job 138	19,400
Job 139	22,400
Job 140	6,800
Total direct materials	130,100
Indirect materials	21,000
Total materials requisitions	$ 151,100

c. Time tickets record use of the following labor for the month. These wages were paid in cash.

Job 136	$ 12,100
Job 137	10,600
Job 138	37,500
Job 139	39,200
Job 140	3,800
Total direct labor	103,200
Indirect labor	24,500
Total labor cost	$ 127,700

d. Applied overhead to Jobs 136, 138, and 139.

e. Transferred Jobs 136, 138, and 139 to Finished Goods Inventory.

f. Sold Jobs 136 and 138 on credit at a total price of $540,000.

g. Recorded the cost of goods sold for Jobs 136 and 138.

h. Incurred the following actual other overhead costs during the month.

Depreciation of factory building	$ 70,000
Depreciation of factory equipment	37,500
Expired factory insurance	11,000
Accrued property taxes payable	35,500

i. Applied overhead at month-end to the Work in Process Inventory account (for Job 137 and 140) using the predetermined overhead rate of 200% of direct labor cost

PREPARE JOURNAL ENTRIES TO RECORD EVENTS AND TRANSACTIONS

1. Purchased raw materials on credit, $220,000.

2. Materials requisitions record use of the following materials for the month.

3. Record raw material purchases on credit.

4.Record the requisition of direct materials.

5. Record the indirect materials.

6. Record the entry for direct labor, paid in cash.

7. Record the entry for indirect labor, paid in cash.

8. Record the entry to apply overhead to jobs 136, 138 and 139.